PARIS (Reuters) – EDF fell on the Paris Stock Exchange on Tuesday after again lowering its forecast for nuclear production in France for this year, again due to corrosion problems detected on several reactors.
The action drops 2.39% to 8.182 euros around 10:45 a.m.
The group announced in a press release on Monday that it was adjusting its 2022 nuclear production estimate to 295-315 terawatt-hours (TWh) against 300-330 TWh “as part of its control program on the nuclear fleet”.
EDF had already lowered this forecast in mid-January, initially estimated between 330 and 360 TWh, following the extension of the shutdown of the five reactors on which corrosion problems were detected.
The nuclear production estimate for 2023, currently 340–370 TWh, “will be adjusted as soon as possible”, added the French group.
While EDF has not quantified the financial impact of this new revision, Jefferies analysts estimate that the group’s purchase of electricity will cost it 2.1 billion euros, or 8% of its market capitalization.
The new warning “should increase pressure on the credit rating” after Fitch recently downgraded its rating from “A-” to “BBB+” and Moody’s and Fitch have a negative outlook, Jefferies added in its note.
(Laetitia Volga, edited by Sophie Luuet)
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